"China has a lot more gold than they declare," John LaForge, head of Wells Fargo's commodities team told CNN.

For the last six years Beijing has stayed secretive about its gold reserves. Last year the government finally revealed a nearly 60 percent growth in reserves since 2009. The country became the fifth largest holder of gold in the world, following the US, Germany, the International Monetary Fund (IMF), Italy and France.

China now reports its gold holdings monthly, encouraged by the IMF’s approval to include the yuan into the reserve basket of currencies.

Gold prices rose above $1,200 a troy ounce in trading Thursday, the highest level in more than eight months.